Bluestar Secutech Share Discussion Threads

[zangdook] 05/11/2009 09:56

sorry to those who have him filtered. I thought the contrast here was 'clearly humorous'.

longsight - 26 Oct'09 - 15:12 - 555 of 563

"since the damp squib TU no one wants to talk about this share."


longsight - 2 Nov'09 - 14:50 - 38421 of 38478 (RCG board)

"I think it is a very bullish sign that this discussion board has largely died a death...There appears to be a correlation between chatter & disaster..."

[gelp] 02/11/2009 16:26

Double-drat!!!!!

[masurenguy] 02/11/2009 14:47

RNS Number : 7490B
BlueStar SecuTech, Inc.
02 November 2009

Notice of Interim Results

BlueStar SecuTech Inc. (AIM: BSST), a leading provider of digital video surveillance solutions in China, will be announcing its Interim Results for the six months ended 30 September 2009 on 23 November 2009. A meeting for analysts will be held on the day. For further information, please contact Redleaf Communications on [phone].

[zangdook] 02/11/2009 14:42

No, he just told us that his posts are "clearly humorous".

[gelp] 02/11/2009 14:25

I can read Stegrego but not Longsight who is filtered.
Did I miss anything?

[masurenguy] 29/10/2009 11:30

A 100K Buy went through earlier this morning.

[longsight] 26/10/2009 15:44

Stegrego - however you dress it up, the fact is that everyone on here was entirely unanalytical about the BSST story - at least my reams & reams of rubbish was clearly humorous whilst yours sadly was simply po faced nonsense. Good luck - you might need it.

[the big fella] 26/10/2009 15:36

Where has this been ramped all over the place. I must have missed that one. Apart from a couple of posts on CR's rampers thred (which appears to be fair game for any old cr*p) I haven't seen this mentioned anywhere.

[stegrego] 26/10/2009 15:22

Longsight, it wasnt 'light hearted ribbing' you were trashing the thread posting reams and reams of rubbish.

Dont come on here all laa dee da now. I made about 60% on the first spike and then in again at 22 and still holding.

I think that they little orders before the recently announced ones, but they could still do well from here.

Im pleased you didnt buy these shares too, as id hate to think i was guilty as making the same investment decisions as you.

Oh and o/t CMSH, which i mentioned at the same time as Mas did this one, is up about 130% since then.

[longsight] 26/10/2009 15:12

No wish to annoy folks on here - but it is somewhat reprehensible that BSST was so heavily ramped across the discussion boards but since the damp squib TU no one wants to talk about this share.

In fact, BSST has proved a poor share if you compare current share price to share price at the start of the year. My opinion, fwiw, is that the Co in effect mislead the market with the flurry of RNS contract news releases which simply didn't square up with the TU.

I'm pleased I didn't buy these shares - & I think the hostile attitude of investors on here to a bit of light hearted ribbing didn't augur well. As it turned out, there was a real deficiency of analysis on here about where the weaknesses of this business lay.

[longsight] 20/10/2009 21:39

Arthurly, I have no further comments I wish to make on BSST but re Jetion - having read their results, I am totally mystified why the share price has recovered there - I just don't get it!

[arthurly] 20/10/2009 21:32

Yep may have had some effect but unlikely to be much imho. Notice Jetion had a huge clearout because directors setting up a seperate business, but soon seems to have bounced back.

I think these guys had very few orders at the start of the year - trawling back over the previous 12 months. Obviously things started to pick up with new orders but maybe the company should have explained that they weren't going to have a significant effect in H1. H2 should be much better but unlikely to be able to make up for H1.

Interesting that they are going to release another trading statement in January though- must expect a much better result for Q3.

[longsight] 20/10/2009 20:44

I believe the Finance Director walked out in August - posters made light of that development at the time. Perhaps his departure was, in retrospect, significant.

[glasshalfull] 20/10/2009 17:40

TBF - We meet over here now.

I agree, crunched the numbers and sold 50k through the day...retaining a third of my previous holding. Thankfully made a small profit but nothing like I anticipated.

My rationale in accumulating was that BSST had a strong cash balance, trading on a low prospective PER, offered decent D/V yield and were winning contracts hand over fist.

Each point in turn.

Cash balance

Has reduced quite substantially. I'm sure that it will be a case of receivables increasing and given the blue chip nature of customer base I'm not unduly perturbed. Still £3m off net cash can't help investor sentiment.

Trading on a low prospective PER

Per Hoodless note above:-
"We believe the market will downgrade current pre-tax profit estimates of £2.4m, EPS of 3.7p.

They've quite a distance to make up in the 2nd half to meet these figures and I'm inclined to think Hoodless may well be right in this regard. Again, it ain't going to help the shareprice short term.

D/V yield

Given lower net cash and possibility of a softening in figures then D/V may well be lower than 0.7p forecast.

Contract wins

What kept my toe in the door so to speak.
I now realise that the company simply release a RNS for each contract win. I thought they had a bit more up their sleeve but certainly no recurring revenue stream to speak of or indeed any revenue to speak of that hasn't been announced (take command centre proposition out the equation).
Even so, the fact that they've been coming thick and fast provides some comfort as does the acknowledgment of revenue recognition in December and further anticipated contract wins.

Lets not forget there was also the announcement of a partnership agreement with the Samsung distributor that was forecast to provide revenue of £2.6m and the potential revenue streams from the Bejing Command Centre and prospects of further via Shanghai and Guangzhou.

In conclusion given the bullish noises emanating from the company since the AGM statement I'm astounded that the 1st half figures are as weak on reflection.
Remember the AGM statement was issued 4 MONTHS INTO THE HALF YEAR and indicated a strong start !!! Not to mention that since the AGM we've had 5 contract win announcements and partnership agreement!!!

So, have to say overall I'm disappointed with the trading statement and it will take some time to rebuild my trust.

Regards,
GHF

[the big fella] 20/10/2009 17:12

Not exactly a glowing summary.

[glasshalfull] 20/10/2009 13:10

Hoodless summary of the statement:-

BlueStar SecuTech Inc (BSST, 25.5p, £18.6m), the provider of digital video surveillance solutions in China, reports a trading update for the half year ended 30 September 2009. Revenues are expected to be around RMB 67m (£6.1m), with Net Profit of RMB 6.7m (£0.6m) and cash balances at 30 September 2009 of approximately RMB 50m (£4.6m). The business continues to win new business, which to date totals in excess of RMB95m (£8.7m). Approximately RMB 80m (£7.3m) will be recognised in the current financial year. The Board expect to generate RMB 21,750 from monthly recurring fees from 94 financial outlets, which use the surveillance command centre BlueStar established. The Board expect to add a further 420 outlets by the end of December 2009, potentially generating an additional RMB 97,000 per month in recurring revenue. Management estimate the Beijing command centre will be fully utilised by the end of 2010 and will provide BlueStar with annualised recurring revenue in the region of RMB 15m (£1.4m). We believe the market will downgrade current pre-tax profit estimates of £2.4m, EPS of 3.7p. However, we believe new contract wins will help maintain the share price. HOLD.

Regards,
GHF

[the big fella] 20/10/2009 09:20

Just read the update. Disappointed but not overly surprised they are missing at half time. On target for full year and I agree with other posters they need to deliver that, and a re-rating should follow. I think it is fair to say any bad news was more than discounted in the current price, so there is any short term weakness I would be a buyer at near 20p.

[masurenguy] 20/10/2009 08:34

Revenue for the six months ended 30 September 2009 is expected to be approx RMB 67 million, with Net Profit of RMB 6.7 million and cash balances at 30 September 2009 of approximately RMB 50 million. Although these figures are behind comparatives for the same period last year, the realisation of new business revenue during the coming months, especially in December, and expected contract wins, mean that the Company is confident of achieving its revenue and profit targets for the year to 31 March 2010 and of its growth opportunities going forward.

Last years comparative figures (in RMB) were Revenues of 80.6m, Net Profit of 12.6m and Cash of 67m. However in H2 business suffered from the impact of the global credit crunch and Revenue was 76.6m, Net Profit was 7.4m with year end Cash at 85m so it is more indicative of a slowly rising recovery during March - September this year than the a more direct comparison with the pre-crash March - September period last year.

Of course they will need to substantiate this comment in terms of actual H2 performance in order to provide credibility to the anticipated ongoing growth story.

Although these figures are behind comparatives for the same period last year, the realisation of new business revenue during the coming months, especially in December, and expected contract wins, mean that the Company is confident of achieving its revenue and profit targets for the year to 31 March 2010 and of its growth opportunities going forward.

[stegrego] 20/10/2009 08:05

I wouldnt be suprised at some weakness now, as people dont like (perceived) negatives in statements even though there are also some positives.

[arthurly] 20/10/2009 07:57

Agreed GHF. Much of the contract value will obviously be recognised in H2. A it disappointing that the cash position has worsened. As you say, likely to be big Chinese banks holding on to cash. Hopefully this figure will go back up again by the year end.

[glasshalfull] 20/10/2009 07:48

Well done Art...trading update this morning.

In line for current year although half year will be down on the storming 1st half 2008, before the crisis. Now we know why the shares didn't race ahead given the multiple contract announcements. Revenue recognition for many projects expected in December which probably distorts somewhat.
Command Centre now bringing in revenues with annual recurring revenue of RMB 15 from next year.

So, forecasts were for £2.37m PTP for year and 3.7p EPS.
Given the fall in revenues in last years H2 I fully expect them to meet these forecasts.

Cash £5m. Good to get an idea if decrease of £2.6m is simply Chinese culture of Banks paying out once per year as I learned while researching Geong.

Happy to hold as I feel they've made traction but don't expect fireworks until full year numbers met.

Regards,
GHF



EDIT - Now crunched numbers and dissected RNS and have to say v disappointed. Feel mislead by company. Post below.

[jonno1] 20/10/2009 07:40

update out...


lets see how the market takes it

[arthurly] 17/10/2009 12:04

Trading update Monday or Tuesday I would think :

[fashamak] 16/10/2009 15:42

Just a note. The 'Chinese Red Army' ceased to exist in the 1930s.